The Seoul Police, Kangnam Division, revealed on the 9th that that it had sent an indictment on the CEO of SM Entertainment, Youngmin Kim (40), to the Public Prosecutor’s Office in relation to the lawsuit that the cosmetics company ‘W’ has filed against SM Entertainment for defamation and obstruction of business.

Ever since the three members of TVXQ—Hero Jaejoong, Micky Yoochun, Xiah Junsu—filed suit against SM Entertainment for the annulment of their long-term exclusive contract with the entertainment management company, Kim has declared, “The reason why the three members of TVXQ filed this lawsuit was to satisfy their greed for money after investing in a cosmetics company”. For these words, Kim was indicted already twice.

The representatives of ‘W’ state, “The CEO Kim is attempting transfer all responsibility and blame for the departure of the three members of TVXQ on us and this has consequently gravely damaged our corporate image”. They also added, “SM Entertainment publicly threatened our operations in China with a civil or criminal lawsuit, which has incurred further damages and led to the loss of our security deposit.”

The police already concluded that “the three members of TVXQ filed the lawsuit against [SM Entertainment] in order to have their long-term exclusive contract with their management company declared invalid; their legal proceedings have noghitng to do with their investment in a cosmetics company.” In October of last year, the Court upheld the preliminary injunction submitted by the three members of TVXQ to have the effects of their exclusive contract nullified during the duration of the lawsuit. SM Entertainment continues to affirm, “we have never mentioned the name ‘W’ in relation to this problem and have thus never commited defamation.”